Weaker job report in August ‘cements’ a Fed interest-rate cut in two weeks

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Weaker job report in August ‘cements’ a Fed interest-rate cut in two weeks
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A Fed interest-rate cut in 2 weeks is all but cemented now... but will the market get more cuts this year?

The weaker-than-expected August job report makes it all-but-certain the Federal Reserve will cut its benchmark interest rate by a quarter-point at their meeting in two weeks, economists said Friday.

“The trade disputes is creating havoc for large companies like GE and Caterpillar, who are freezing like deer in the headlights,” Bethune said. Carl Tannenbaum, chief economist at Northern Trust, said he thought those Fed officials opposed to a rate cut will also argue against a September rate drop following the August job data.Fed Chairman Jerome Powell will speak about the outlook later Friday.

Ian Shephedson, chief economist at Pantheon Economics, noted that wage growth is rising at a 4.2% annual rate over the past three months.

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